In 2023, Palantir stock (NYSE:PLTR) saw an incredible improvement in sentiment around its business model. The rise of AI-related stocks was on, and PLTR stock took off, increasing by 18%. This rally continued into this year, with Palantir stock surging another 32% on a year-to-date basis alone.
The company has seen its AI-related tailwinds materialize on its earnings report, with the company’s Q4 report in February showing strong traction. Commercial clients are now adopting its AI platform, and other collaborations are boosting the company’s outlook among investors.
Here’s more on why sentiment around Palantir stock remains so bullish, and my take on whether this stock is a buy right now.
Cloud Footprint from Oracle Will Boost PLTR
Palantir and Oracle (NYSE:ORCL) announced a collaboration to offer secure cloud and AI solutions for global businesses and governments. Palantir’s Foundry, Gotham, and AIP platforms are now accessible via Oracle’s cloud infrastructure. Palantir’s AIP has seen high demand, with boot camps demonstrating the benefits of AI integration. This has contributed over 70% year-over-year in U.S revenue.
Notably, this collaboration with the Oracle was one of the key reasons Palantir’s business increased 25% year-over-year, surpassing some big-named rivals. With a $10 billion budget, Oracle plans to expand its data center capacity, enhancing Palantir’s opportunities. This partnership should benefit from the anticipated 36% annualized growth rate in AI-related cloud offerings, boosting both companies in their search for growth.
Partnership with Hyundai
The mine’s expenses surged from $2.27 billion to almost $2.93 billion due to increased engineering costs, union labor agreements, and housing construction for workers. U.S. regulations allocate funds for processing facilities, not mining. With GM’s $650 million investment, the loan will fund the initial phase.
HD Hyundai announced its partnership with Palantir, aiming to merge Avikus’s autonomous navigation software with Palantir’s AI mission autonomy tech. Palantir, known for serving major clients like the U.S. Department of Defense, brings extensive experience, including collaborations with Lockheed Martin.
Joo Won-ho, head of HD Hyundai’s naval particular ship unit, expressed confidence in HD Hyundai’s ability to pioneer the USV market through their joint technological advancements.
PLTR Stock Still Looks Like a Buy
Palantir’s AI-powered commercial growth is evident. With expanded AI solutions, revenue and earnings acceleration is likely. Analysts predict a 22% revenue increase to $2.71 billion. The Oracle partnership may spur faster growth, potentially surpassing expectations and driving further stock gains.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
